By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPCL) has raised concerns over inadequate funding for domestic gas projects, attributing the shortfall to a reliance on international oil companies (IOCs) that prioritize export over local gas development. This was disclosed by NNPCL’s Group Chief Executive Officer, Mele Kyari, at the 40th Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) during a strategic session on decarbonizing the energy value chain.
Kyari, represented by NNPCL’s Executive Vice President of Upstream, Oritsemeyiwa Eyesan, stressed the critical need for financing to support Nigeria’s vast gas resources, estimated at 209 trillion cubic feet. According to Kyari, limited access to capital has hindered the progress of domestic gas projects, with the majority of funding originating from IOCs primarily focused on gas exportation.
“Addressing this existential issue requires enabling access to capital for less energy-endowed regions in the global south to support their domestic energy needs,” Kyari stated.
In a statement by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, Kyari underscored the importance of collaboration and transparency in the industry’s drive toward net-zero emissions by 2050. He called for cooperation without vilification, emphasizing the need to bridge capability gaps between countries on different decarbonization trajectories.
Kyari highlighted two key policy shifts underpinning Nigeria’s decarbonization efforts: the declaration of the “Decade of Gas” to transition from diesel to a gas-driven economy, and the removal of fuel subsidies. These policies are central to NNPCL’s agenda to curb carbon emissions.
As a signatory to the Oil & Gas Decarbonization Charter, Nigeria aims to eliminate gas flaring by 2030 through initiatives in automotive and power generation. Kyari noted that while decarbonization goals are shared globally, diverse circumstances necessitate differentiated approaches.
ADIPEC, which has drawn over 180,000 participants, is the world’s largest congregation of energy professionals, with this year’s conference focusing on innovation, artificial intelligence, and accelerating decarbonization efforts across the oil and gas sector.
